The marginal factor cost curve is:
A)equal to input prices.
B)below an upward sloping input supply curve.
C)downward sloping.
D)the ratio of changes in total factor cost to quantity purchased.

Question

Quizplus · Accepted Answer

The marginal factor cost curve represents the additional cost to a firm of purchasing one more unit of an input. It is calculated as the ratio of the change in total factor cost to the change in the quantity of the input purchased, making option D correct.

The Marginal Factor Cost Curve Is